Comments on: Are we currently suffering a major supply-chain whiplash? http://www.hartnall.com/2009/05/supply-chain-whiplash/ Attempting to convert random thoughts into sentences. Mon, 03 May 2010 08:46:29 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: James Foster-Brown http://www.hartnall.com/2009/05/supply-chain-whiplash/comment-page-1/#comment-195 James Foster-Brown Sun, 03 May 2009 13:27:32 +0000 http://www.hartnall.com/?p=308#comment-195 There would also be a different effect for different companies: manufacturers of high turnover/low inventory products with streamlined supply-chain-management would be hit first e.g. perishable foods. Conversely low turnover products with a slow production time like pianos or houses would be affected later. So as you say the first effects of any slowdown in consumer demand would be felt much more quickly (in the former industries), likewise any resurgence of confidence. Almost like a unmedicated diabetics blood sugar levels. So the level of efficiency in a supply chain should be attributed to a particular sector when deciding how to trade it. I wonder if there could be a trade in finding manufacturers as diametrically opposite as possible and doing a sort of arbitrage? Using my examples above short food/long pianos going into a recession then the reverse as things start to pick up? An interesting fact I read in the economist the other day is that something like 80% of all discretionary spending is done by women. I believe it was an article about advertising's bias changing from men to women. There would also be a different effect for different companies: manufacturers of high turnover/low inventory products with streamlined supply-chain-management would be hit first e.g. perishable foods. Conversely low turnover products with a slow production time like pianos or houses would be affected later. So as you say the first effects of any slowdown in consumer demand would be felt much more quickly (in the former industries), likewise any resurgence of confidence. Almost like a unmedicated diabetics blood sugar levels.

So the level of efficiency in a supply chain should be attributed to a particular sector when deciding how to trade it.

I wonder if there could be a trade in finding manufacturers as diametrically opposite as possible and doing a sort of arbitrage? Using my examples above short food/long pianos going into a recession then the reverse as things start to pick up?

An interesting fact I read in the economist the other day is that something like 80% of all discretionary spending is done by women. I believe it was an article about advertising’s bias changing from men to women.

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